My wife, Jenny, had a job at Pier 1 Imports many years ago. About two weeks after she was hired, she received a packet in the mail regarding the company’s 401K. The form asked her to select her investment options, making sure they total 100%, sign the bottom, and send it in. My wife happens to be an excellent interior decorator but had very limited knowledge about investing. Small cap, domestic equity, fixed income, stable value, balanced, target date — which funds should she choose? She was not familiar with any of it. I have found that many people are just like her. They may be intelligent people and good at what they do, but the investment world is a whole new world with its own language.

Too often, I find that people are investing with no real plan. They may have too much or too little in savings and have randomly picked investments that do not match their needs.

How the 3-Bucket Approach Can Transform Your Investment Strategy

I have simplified my recommendations to a 3-bucket approach: Money now, money soon and money later. The next question I usually get is, how much should I invest in each bucket? My answer is always, I don’t know. I don’t know because I have not sat down with you to discuss the details of your personal situation. When do you plan on retiring? How many children do you have? Do they plan on going to college? Do you have enough life insurance in place? Are you planning for a large purchase in the near future? etc. etc. etc. If you find yourself feeling like you’re investing without a plan, I would be happy to help. I will clearly explain your investment options in simple, easy-to-understand terms.

Thanks, Dave